India, Nov. 12 -- GoKwik's Golden Handcuffs

GoKwik has added a contentious twist to its ESOP policy. Under the new rules, current and former employees could forfeit their unvested and vested-but-unexercised options if they join any of GoKwik's nine rivals. Can the startup use ESOPs to restrict where its talent goes next?

A New Kind Of Restriction: GoKwik's amended ESOP Plan 2021 names Razorpay, Shiprocket, CRED, Cashfree Payments, BiteSpeed, Snapmint, WebEngage, Shopflo and Pine Labs as restricted companies. Employees cannot join, advise and invest in them without risking the loss of outstanding options. Crucially, the restriction applies retroactively to previously issued grants and extends for two full years after an employee's depart...